Q1 earnings season is virtually over. With 490 companies (98%) of the companies in the S&P 500 reporting. Randy Frederick from Charles Schwab sees the S&P 500 rally extending until at least the 3,137 level.
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Key quotes
“From a growth standpoint, Q1 EPS was -7.7% y/o/y; Q1 revenue was +0.9% y/o/y. This compares to +0.6% and +3.4% respectively in Q4.”
“The 3/23 low of 2,237 seems very unlikely to be broken any time soon. At the close Thursday (5/28) the S&P 500 was +35% from that low, yet amazingly there are still plenty of skeptics that are still calling this a ‘bear-market rally’. It only takes a 20% gain to start a new bull market.”
“I would watch the 3,019 200-day to see if it can provide some immediate downside support. Below that; keep your eye on the 50-day SMA (now at 2,772). On the upside, it looks fairly clear until at least 3,137, if not higher.”
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